Business Studies – 4.2.1 The use of technology in the production of goods and services | e-Consult

Automation in manufacturing offers significant potential benefits but also presents challenges. Advantages for the business include increased productivity due to faster and more consistent output, reduced production costs through lower labour expenses and fewer errors, and improved quality control. Automation can also allow businesses to operate for longer hours and increase overall output capacity. Furthermore, it can improve workplace safety by removing employees from dangerous tasks.

However, there are disadvantages. The initial investment in automation technology can be very high, representing a significant financial burden. There's also the potential for job losses, leading to social and economic consequences for employees. Businesses may need to invest in retraining programs to help employees transition to new roles, which adds to the cost. Automation can also make the business less flexible, as it may be difficult and expensive to adapt to changes in customer demand. Finally, reliance on technology can create vulnerabilities if the system fails.

Impact on employees is a key consideration. While some jobs may be lost, automation can also create new, higher-skilled roles in areas such as maintenance, programming, and system management. However, this requires significant investment in training and development. The overall impact depends on how the business manages the transition and supports its workforce.